Howard Hughes Holdings Inc.
For the period ended Jun 30, 2026. Filed Aug 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 5, 2026
Contents
Strategic Developments
Our Strategic Developments assets generally require substantial future development to maximize their value. Other than our condominium properties, most of the properties and projects in this segment do not generate revenues. Our expenses relating to these assets are primarily related to costs associated with constructing the assets, selling condominiums, carrying costs including, but not limited to, property taxes and insurance, and other ongoing costs relating to maintaining the assets in their current condition. If we decide to redevelop or develop a Strategic Developments asset, we expect that with the exception of the residential portion of our condominium projects, upon completion of development, the asset would likely be reclassified to Operating Assets when the asset is placed in service and NOI would become a meaningful measure of its operating performance. All development costs discussed herein are exclusive of land costs.
Segment EBTSegment EBT for Strategic Developments is presented below:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| thousands except percentages | 2026 | 2025 | $ Change | % Change | 2026 | 2025 | $ Change | % Change |
| Condominium rights and unit sales | $706,311 | $193 | $706,118 | NM | $709,445 | $535 | $708,910 | NM |
| Rental revenue | (2) | (26) | 24 | 92% | (2) | 33 | (35) | (106)% |
| Other revenues | 1,123 | 547 | 576 | 105% | 2,396 | 1,000 | 1,396 | 140% |
| Total revenues | 707,432 | 714 | 706,718 | NM | 711,839 | 1,568 | 710,271 | NM |
| Condominium rights and unit cost of sales | (575,389) | (811) | (574,578) | NM | (578,523) | (1,053) | (577,470) | NM |
| Operating costs | (7,092) | (3,760) | (3,332) | (89)% | (11,526) | (7,336) | (4,190) | (57)% |
| Rental property real estate taxes | (505) | (615) | 110 | 18% | (1,026) | (1,163) | 137 | 12% |
| Total operating expenses | (582,986) | (5,186) | (577,800) | NM | (591,075) | (9,552) | (581,523) | NM |
| Segment operating income (loss) | 124,446 | (4,472) | 128,918 | NM | 120,764 | (7,984) | 128,748 | NM |
| Depreciation and amortization | (2,068) | (1,076) | (992) | (92)% | (4,125) | (2,234) | (1,891) | (85)% |
| Interest income (expense), net | 4,097 | 4,633 | (536) | (12)% | 9,071 | 9,279 | (208) | (2)% |
| Other income (loss), net | — | 132 | (132) | (100)% | (889) | (1,130) | 241 | 21% |
| Equity in earnings (losses) from unconsolidated ventures | 76 | 87 | (11) | (13)% | (4,906) | 174 | (5,080) | NM |
| Gain (loss) on sale or disposal of real estate and other assets, net | — | 1,657 | (1,657) | (100)% | — | 1,657 | (1,657) | (100)% |
| Segment EBT | $126,551 | $961 | $125,590 | NM | $119,915 | $(238) | $120,153 | NM |
| MANAGEMENT’S DISCUSSION AND ANALYSISRESULTS OF OPERATIONS | Table of Contents |
|---|
Strategic Developments segment EBT increased $125.6 million compared to the prior-year period primarily due to the following:
–Condominium sales, net of cost of sales increased $131.5 million due to the closing of 527 units at The Park Ward Village in the current period.
Strategic Developments segment EBT increased $120.2 million compared to the prior-year period primarily due to the following:
–Condominium sales, net of cost of sales increased $131.4 million due to the closing of 527 units at The Park Ward Village and the remaining 6 units at Ulana Ward Village in the current period.
–Equity earnings decreased $5.1 million due to the recognition of the Company’s share of a loss on sale of land at our West End Alexandria joint venture. See Note 5 -Investments in Unconsolidated Ventures in the Notes to Condensed Consolidated Financial Statements under Item 1 of this Quarterly Report for additional information.
Condominiums Condominium revenue is recognized when construction of the condominium tower is complete and unit sales close, leading to variability in revenue recognized between periods.
Completed Condominiums Ulana Ward Village was completed in the fourth quarter of 2025, and the remaining six units closed in the first quarter of 2026. The Park Ward Village was completed in the second quarter of 2026, and 527 of the 545 units were closed in the second quarter of 2026. As of June 30, 2026, The Park Ward Village is 97% sold with the remaining units in condominium inventory.
Under Construction and Predevelopment Condominiums The Company commenced construction on The Launiu in the first quarter of 2026. The following provides further detail for our under construction and predevelopment condominium projects as of June 30, 2026:
| Location | Units Under Contract | Total Units | Total % of Units Under Contract | Completion Date | |
|---|---|---|---|---|---|
| Under construction | |||||
| Kalae | Honolulu, HI | 309 | 329 | 94% | 2028 |
| The Ritz-Carlton Residences | The Woodlands, TX | 85 | 111 | 77% | 2027 |
| The Launiu | Honolulu, HI | 362 | 485 | 75% | 2028 |
| Predevelopment | |||||
| Melia | Honolulu, HI | 154 | 220 | 70% | 2030 |
| ‘Ilima | Honolulu, HI | 93 | 148 | 63% | 2030 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.